How Obama's Executive Orders Could Transform the Auto Industry

The two directives, both impacting the auto industry, were the first official memorandums issued by the new president.

Published: 04-Feb-2009

During his first week in office, President Barack Obama announced a major move aimed at improving fuel economy and lowering tailpipe emissions. Here's what it could mean for automakers.

A week ago, President Barack Obama ordered the Environmental Protection Agency (EPA) to review its decision that prevented California from setting its own standards for greenhouse-gas emissions released from automobiles. Should the EPA grant California, more than a dozen other states and the District of Columbia permission to set a standard for tailpipe emissions, automobile manufacturers will have to retool quickly to begin producing and selling vehicles that get higher mileage than the national standard, and on a faster phase-in schedule.

Given Obama's executive order, the agency is expected to reinstate the law.

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